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Putin Signs Decree for HSBC to Sell Russian Business

By Mauro Orru

 

Russian President Vladimir Putin signed a decree allowing HSBC Holdings to sell its business in the country to local lender Expobank, marking another departure from corporate Russia almost two years after the invasion of Ukraine.

The decree, signed on Monday, enables Expobank to acquire 100% of shares in HSBC Bank (RR), the bank's Russian business. Leaving the Russian market has been a tedious endeavor for many Western organizations following the invasion of Ukraine, after the Kremlin moved to tighten legislation and, in some cases, confiscate assets.

Last year, Russia decreed that the state can take temporary control of assets of companies or individuals from what the Kremlin calls "unfriendly" states. HSBC is based in London but earns most of its pretax profit in Asia, including in Hong Kong and mainland China.

HSBC and Expobank didn't respond to requests for comment.

 

Write to Mauro Orru at mauro.orru@wsj.com

 

(END) Dow Jones Newswires

February 19, 2024 11:58 ET (16:58 GMT)

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